Best Business Credit Cards for Bad Credit
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Business owners with bad personal credit have two options for business credit cards: secured cards and corporate cards.
For most small businesses, a secured card will be your best bet. Secured cards require a cash security deposit, but are easy to get even if your credit score is low. Plus, paying your bill on time can help you build business credit.
Corporate cards typically don't require a credit check, but your business will need steady revenue and a five-figure bank balance to qualify. They’re a better fit for larger, more established businesses.
Whichever you choose, consider a secured personal credit card too. Using that responsibly will help build your personal credit over time. Personal credit almost always play a role in business finances. The sooner you invest in it, the better.
Best business credit card options if you have bad credit
Secured business credit cards
A secured business credit card is the best way to establish and build your business credit if you can’t qualify for a traditional business card. Prioritize paying your card on time. Also, aim to keep your credit utilization relatively low to have a positive impact on your business credit score.
Here are some secured business credit cards from banks and credit unions. Eligibility may depend on where you live:
Secured personal credit cards
If bad personal credit is preventing you from financing your business, a secured personal card is the best choice to help you improve your credit over time.
Open one of these cards and use it for predictable expenses, then pay it off on time every month. That’s a reliable strategy for building credit.
Credit-building services
Some services focus on building your business credit. Business credit is different from your personal credit. But it’s based on some of the same factors — on-time payment history, credit utilization and length of your credit history. Your business credit scores grade your business’s ability to pay back debt on time and in full.
Good business credit may give your financing application a boost. But a good business credit score probably won't outweigh a bad personal credit score. The best credit builders help you build both types of credit at the same time.
Some business credit builder services include secured business credit cards in their packages.
Corporate cards
Corporate credit cards are best for businesses with a bank balance of $20,000 or higher and substantial annual revenue. Most require you to operate as a corporation or LLC. And you'll usually have to pay down your balance in full at the end of every month.
These corporate card options may be available to newer, smaller businesses.
Business credit cards for fair or average credit
The following business credit cards are available to business owners with fair or average credit (typically a FICO score between 630 and 689).
Other financing options for business owners with bad credit
Business owners with less-than-perfect personal credit have limited options for business credit cards and business funding. But there are a few options that exist beyond secured and corporate cards.
If you need more capital than a secured card allows:
There are some business loans you might qualify for. For example, Fundbox’s business line of credit goes up to $250,000, and business owners with a credit score of at least 600 and six months in business can qualify. Here’s NerdWallet’s list of the best business loans for bad credit.
You can also consider a personal loan for bad credit. We always recommend separating your personal and business finances, but most entrepreneurs have to rely on personal savings or personal loans at some point. A loan in your name can offer short-term financing plus the opportunity to strengthen your personal credit for future business borrowing needs.
If you don’t want to put down a deposit:
Invoice financing or a merchant cash advance could make sense. With both types of financing, your loan is secured by your future receivables. That means you pay the lender back with a fixed amount based on an invoice or with a fixed percentage of your sales.
In general, invoice financing and MCAs are more expensive than traditional business lines of credit. But they also tend to be easier to qualify for.
How do you apply for a business credit card with bad credit?
Follow these steps to make sure you’re finding the right product for your needs.
Know your credit score. Applying for a bunch of credit cards in a short time frame can hurt your credit score. It's also a red flag to issuers. So before you apply for a business credit card, check your personal credit score. Then you can focus on cards with the best chance of approval. You can get a free credit score from NerdWallet.
Identify your goals. Do you want to build your personal credit, your business credit or both? If the answer is both, you’ll have to look for products that report to both personal and business credit bureaus. (Nav Prime is one of the few.) Or you can apply for both a personal and a business card.
Talk to your business banker, if you have one. Your local bank or credit union may offer a secured business card. That may be a great option, especially if it doesn’t charge an annual fee. Plus, you’ll have the opportunity to start a relationship with a business bank right away.
Research fees. Unfortunately, your financing options are limited when you have bad credit. Some companies take advantage of that by charging very high fees or interest rates. If you don’t feel confident in your understanding of how a product works or how much you’ll be paying for it, don’t use it.
Apply. You can apply for most business credit cards online. This will temporarily hurt your personal credit. If your credit score is already low, you’ll want to avoid dinging it for no reason. You typically can’t prequalify for a business card, or understand in advance if an approval is likely. So double-check the requirements before you click “apply.”
Make your deposit. If you’re approved for a secured card, you can make your deposit via ACH transfer. Corporate cards don't require a deposit, but you will need to connect your business bank account and provide financial statements to prove things like revenue and time in business.
Information for the Capital One® Spark® Classic for Business has been collected by NerdWallet and has not been reviewed by or provided by Capital One.
Methodology
NerdWallet's business credit card team selects the best small-business credit cards without outside input from partners or other business interests. We evaluate business cards based on value and simplicity, weighing fees, sign-up bonuses and reward rates, alongside perks like interest-free periods, statement credits and elite status (for travel cards). Business cards that earn the highest scores deliver the most value to the greatest number of business owners.
Notable changes to our methodology for 2025 include factoring in whether spending on employee cards earns rewards and counts toward the welcome offer requirements. We also now consider what information the card issuer reports to consumer credit bureaus. Learn how NerdWallet rates small-business credit cards.
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